A new law approved by the government of Cuba allowing citizens of the communist country to buy and sell cars, will come into effect on Oct. 1.
Auto sales on the island had been previously limited to cars built before 1959. The new law will permit car sales of any model and year and will allow residents to own more than one car. Buyers and sellers will both be subject to a 4% sales tax.
Additionally, Cuban residents who emigrate will be allowed to legally give their cars to family members or friends, or sell them outright. Before, the government would routinely take possession of automobiles from Cubans who left the country to live elsewhere.
This new measure is seen as a positive step in Cuba’s attempt to improve its economic situation. The country has made recent reforms allowing limited free-market policy, such as the privatization of some business and permitting citizens to rent rooms in their homes and hire employees.
The government has also announced plans to legalise the purchase and sale of real estate before the end of 2011.